Pay in lieu of notice clause

PILON (Pay in lieu of notice clause) is a contractual right to pay an employee a lump sum rather than require them to work out their statutory or contractual notice period.
If there is no PILON clause in a contract of employment then an employer who pays an employee a lump sum salary payment instead of requiring them to work their period of notice will technically be in breach of contract but the employee will usually have suffered no loss.

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Derby

St Michael's Court,St Michael's Lane, DerbyDE1 3HQ

Tel: 01332 340 211Fax: 01332 207 601DX: 729320 Derby 24

SRA number: 509657

Ashbourne

54 St. John StreetAshbourneDE6 1GH

Tel: 01335 342 208Fax: 01335 342 010DX: 26834 Ashbourne

SRA number: 511804

Opening hours

Flint Bishop LLP is a Limited Liability Partnership registered in England and Wales. Registered number OC317931. Registered office: St Michael's Court, St Michael's Lane, Derby DE1 3HQ. Authorised and regulated by the Solicitors Regulation Authority. A full list of members is available at the registered office. Any reference to a Partner of Flint Bishop LLP means a member, employee or consultant of Flint Bishop LLP with equivalent standing and qualifications.